Looking through properties to purchase on trademe and visiting open homes, talking to agents etc I can only put together 6% ish yields in less desirable suburbs in regional towns of the north island.
Working with the banks lending criteria of P&I on 25 year terms, we?d need 11% give or take to break even on lending so I?m needing to put in 50% deposit into a property to make it cashflow break even in the banks eyes.
How on earth are people growing their portfolios in this day and age!?
Makes sense to simply pay down debt or invest elsewhere (index funds) as the numbers simply don?t stack up anymore
Thoughts?
Working with the banks lending criteria of P&I on 25 year terms, we?d need 11% give or take to break even on lending so I?m needing to put in 50% deposit into a property to make it cashflow break even in the banks eyes.
How on earth are people growing their portfolios in this day and age!?
Makes sense to simply pay down debt or invest elsewhere (index funds) as the numbers simply don?t stack up anymore
Thoughts?
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